Apple Inc (AAPL)

[LisaAu]

Apple made a local high on 19 Jan 2011. If McLaren's notion, that new highs typically occur every 4 or 5 days in sustained uptrends applies to Apple, Apple must make a new high by the close tomorrow, the 5th day, since it did not make one today, the 4th day since 19 Jan 2011.

McLaren states this relationship applies to the $SPX. I'm saying let's take a look at some other indices and stocks and see if it holds there, too.

Whatever the case if this "McLaren Dip" notion predicts better than chance levels that there's a local high in place it provides useful information for traders.

Presently AAPL has a very fine two day move, up from the local low of 326.63 on 21 Jan 2011. About 15 points up. . .most of us will be very happy with that, anytime.

On the other hand, if AAPL doesn't exceed its 19 January number by the close tomorrow, we'll get a chance to see if that day was indeed a local high, but we'll need to wait to see what the chart tells us in the days ahead.

For more on McLaren see:

http://mclarenreport.net.au/articles/